The benchmark All Ordinaries 30-share index fell 0.2%, ending just 1% off a high that dates back to September 2008.

The currency's strength was a source of grumbling in Australia, where the No. 1 business is exporting raw commodities — coal, iron ore, gold, wheat and wool. Its top two customers are China (29.4% of exports, according to the CIA Factbook) and Japan (19.4%).

Commodity pricing is fiercely competitive, and the rising Aussie could easily push buyers to other markets. A Chinese importer must first buy Australian dollars if he wants a shipment of coal. And if the Aussie rises too much compared with other sellers of coal, guess who gets the business.

The Australian dollar has pretty much resisted previous attempts to bring it down. Tuesday's rate cut was the seventh such move in the past 19 months.

Even with this move, Australia is a high-yield country in a low-yield world. Australia's two- and 10-year notes are yielding 2.53% and 3.12%, respectively.

Compare that with U.S. Treasuries, which return 0.22% and 1.78%, respectively.

So what's the risk of holding high-yielding Australian assets? Currency risk is high, as Tuesday's action underscores. If you can live with that risk, you can collect a higher yield.

At the same time, one can look at Australian stocks as a way to play the China story without buying Chinese stocks, which carry their own set of risks and uncertainties. As China growth goes, so goes its demand for inputs such as coal and iron ore.

One easy way to tap into Australia's higher returns and stock-market potential is through the NYSE-listed iShares MSCI Australia (EWA) ETF. This ETF is designed to reflect movement in Australia's broad market.

Ishares Australia carries a 4.9% dividend. The exchange traded fund is priced in U.S. dollars, and that's how dividends are paid.

There's still currency risk. The ETF reflects Australian stocks trading in Sydney. The dividend is earned in Aussies and is converted to U.S. dollars only when it's time to pay.

The financial sector makes up 44.6% of this ETF, while raw materials account for 16.5%, according to fund tracker Morningstar.

Ishares Australia fell 1% Tuesday. It stands in fourth place on the Daily World Map with a 9.2% year-to-date return.

Concerned by a too-strong local currency, and by the harm done by that strength, the Reserve Bank of Australia cut its benchmark overnight lending rate by a quarter-point to 2.75%.

The Australian dollar, which had been trading sideways since July, fell 0.78 cent to $1.0163, its lowest since March 4.

The benchmark All Ordinaries 30-share index fell 0.2%, ending just 1% off a high that dates back to September 2008.

The currency's strength was a source of grumbling in Australia, where the No. 1 business is exporting raw commodities — coal, iron ore, gold, wheat and wool. Its top two customers are China (29.4% of exports, according to the CIA Factbook) and Japan (19.4%).

Commodity pricing is fiercely competitive, and the rising Aussie could easily push buyers to other markets. A Chinese importer must first buy Australian dollars if he wants a shipment of coal. And if the Aussie rises too much compared with other sellers of coal, guess who gets the business.

The Australian dollar has pretty much resisted previous attempts to bring it down. Tuesday's rate cut was the seventh such move in the past 19 months.

Even with this move, Australia is a high-yield country in a low-yield world. Australia's two- and 10-year notes are yielding 2.53% and 3.12%, respectively.

Compare that with U.S. Treasuries, which return 0.22% and 1.78%, respectively.

So what's the risk of holding high-yielding Australian assets? Currency risk is high, as Tuesday's action underscores. If you can live with that risk, you can collect a higher yield.

At the same time, one can look at Australian stocks as a way to play the China story without buying Chinese stocks, which carry their own set of risks and uncertainties. As China growth goes, so goes its demand for inputs such as coal and iron ore.

One easy way to tap into Australia's higher returns and stock-market potential is through the NYSE-listed iShares MSCI Australia (EWA) ETF. This ETF is designed to reflect movement in Australia's broad market.

Ishares Australia carries a 4.9% dividend. The exchange traded fund is priced in U.S. dollars, and that's how dividends are paid.

There's still currency risk. The ETF reflects Australian stocks trading in Sydney. The dividend is earned in Aussies and is converted to U.S. dollars only when it's time to pay.

The financial sector makes up 44.6% of this ETF, while raw materials account for 16.5%, according to fund tracker Morningstar.

Ishares Australia fell 1% Tuesday. It stands in fourth place on the Daily World Map with a 9.2% year-to-date return.

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